Supply chain management doesn’t just go one way, and that’s why we’ve structured a reverse logistics service that’s flexible to your needs. No matter if you’re looking to handle customer returns, seasonal product returns or if you just want to protect your brand by destroying and recycling old products, ShipCalm has a solution for you!
What Percentage of Products are Returned?
Regardless of how optimized your eCommerce business is, returns are an inevitability. If you’re selling online, simply put, you need to be prepared to process, handle and manage returns. This is when reverse logistics providers can often come in handy. Did you know that about 30 percent of all online products are returned? That is a tremendous amount compared to a brick-and-mortar’s return rate of just around 9 percent.
Why do consumers return eCommerce products at such a high rate? The following are the top reasons, according to Invesp’s eCommerce Product Return Statistics and Trends:
- Product Arrived Damaged: 20 percent
- Wrong Item Was Shipped: 23 percent
- Product Looks Different from Website: 22 percent
- Other: 35 percent
Whether you run an eCommerce site, it’s vital you have a seamless, clear return policy in place. Customers are finicky and unforgiving, and you’re trying to survive in times where competition is high. A few more stats that may convince you:
- More than 90 percent of consumers will make a purchase if they know returns are easy
- Almost 70 percent of online shoppers will review a return policy before buying
- Close to 60 percent of consumers are looking for a no-questions return policy
- Just under 80 percent of consumers demand free return shipping on purchases
Common Challenges with Returns
Why are returns such a complicated issue for brands? There are numerous challenges that businesses might face when processing returns, which is why a reverse logistics service is such a valuable option. Some of the biggest challenges merchants face when handling returns include:
- Tracking Warranties – if there is a warranty component and a third party is now involved, returns suddenly become even more problematic.
- Tracking Value – often returns are due to damaged or faulty components in a product. How do you assess the value of a partially damaged item?
- Contractors and Dealers – using subcontractors, contractors or distributors that go beyond your own individual services offered can be complicated, particularly if you are sending back, say, just one component from an original package.
- Efficient Repair Processes – repairs can be tricky if service-members aren’t skilled on a particular product.
Why Is Reverse Logistics Important?
Beyond the obvious (customer satisfaction for a seamless return process), there are many other reasons reverse logistics are of huge importance. Having a reliable reverse logistics service and process in place can mean you will enjoy:
- Customer Loyalty
- Decreased Expenses
- Ability to Handle High Volume of Returns
- Better Profitability
- Inventory Management
- Asset Recovery
- Maximum Value from Products
- Ease of Disposal
- A Reputation for Being Enviro-Friendly
- Ability to Return Parts and Products to Manufacturers
Different Reverse Logistic Strategies for Different Business Models
Every business, which means that the most effective reverse logistic strategy will be based on that company’s specific needs. A third-party logistics service like ShipCalm can offer reverse logistics services that can handle businesses that require return services. Especially for apparel and accessories companies that anticipate frequent returns based on sizing, a solidified reverse logistics strategy is of utmost importance. Similarly, some companies provide free trial periods or even require the return of their product under the guidelines of their service. A few business models that would require a customized reverse logistics services include but are not limited to:
- DNA Home Test Kits
- Try Before You Buy
- Amazon Prime Wardrobe
- Warby Parker
- Rent the Runway
- Companies that offer a Free Trial Period
- Kasper
- Subscription Box Services
- Nature Box
- Dollar Shave Club
- Brickell
- Companies that offer Free Samples
- Gillette
- Loreal
As we can see, numerous different companies have implemented a business model that requires a streamlined and seamless reverse logistics system. These businesses are often familiar with the process of “dispositioning returns.” Distributioning returns refers to the merchant’s specific return strategy that calculates the financial impact on the merchant with different possible return strategies. Many merchants ask customers to return the product and simply keep them in storage. However, paying for storage fees and carrying costs without a solid dispositioning strategy in place is not a smart financial move.
Dispositioning Return strategies can include reselling to other customers (when possible), reselling products to third-party sellers like eBay, or choosing to allow customers to keep the unwanted product and provide a refund/credit as an act of good measure. Merchants should determine their disposition return strategy with a financial analyst and reverse logistics service that understands their business’s needs. For example, ShipCalm can help set up a partnership to have returns go directly to third-party sellers so merchants are not stuck paying additional storage fees if this strategy makes sense.
ShipCalm’s Reverse Logistics Services
Now that we understand the importance of having a solid reverse logistics strategy in place, let’s dive into some of the specific reverse logistics services ShipCalm offers to provide our partners peace and mind surrounding their returns. Some of our affordable reverse logistics and return management services include:
- Return Management
- eCommerce Customer Returns
- Seasonal Product Returns
- Repackaging
- Detailed Product Inspection Upon Return
- Automated Technology & Equipment
- Destruction of Surplus Products
- Product Recalls
- Setup Partnerships with Resellers
- Dispositioning Returns
ShipCalm’s Reverse Logistics Services: Platforms We Work With
Let’s face it: reverse logistics can get pretty complicated, especially for larger companies that handle returns fairly frequently. Especially considering the demand to recycle materials used in shipping, reverse logistics have become an integral part of modern commerce. For companies that need to keep a pulse on the inner workings of their business, it might be overwhelming to also take on the responsibility of handling these returns. Outsourcing reverse logistic services is a smart way of saving time and money in your efforts to optimize your return management strategy and ensure accuracy.
Due to our proven experience and simple and affordable process, ShipCalm has partnership integrations with several different eCommerce platforms and marketplaces. We understand supply chain management from beginning to end, with access to a comprehensive and expedient shipping network that can speed up returns and replacements for customer shipments. ShipCalm knows a variety of different reverse logistic strategies and are well-acquainted with customizing these strategies based on the specific business model to minimize mistakes and track logistics most effectively. ShipCalm will identify the best reverse logistics service for your needs and develop a strategy that will support long-term growth. We can integrate with any platform and work with any marketplace including some of the following:
Let ShipCalm Become Your Reverse Logistics Provider!
Having a partner you trust means alleviating the stress of trying to handle all the issues and challenges returns present. From seasonal returns, to basic daily returns, to the need to destroy or recycle old product, ShipCalm can address the complicated process of handling returns. Contact us or get started with a custom price today!
